Safilo Group SpA (SFL) AI Stock Analysis

• Market Cap: €357.90M
• Dividend Yield: N/A
• Average Volume (3M): 1.10M
• Price to Earnings (P/E): 15.9
• Beta (1Y): 1.43
• Revenue Growth: -3.08%
• EPS Growth: N/A
• Country: IT
• Employees: 3,352
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 0.01
• Shares Outstanding: 414,239,320
• 10 Day Avg. Volume: 796,512
• 30 Day Avg. Volume: 1,104,260
• PEG Ratio: 0.14
• Price to Book (P/B): 1.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -93.84
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €1.20
• Price Target Upside: 39.53% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 65 Neutral
• Price Target: €1.00 ▲(16.28%Upside)

The overall stock score reflects strong financial performance with improved profitability and cash flow, balanced by moderate technical indicators and fair valuation metrics. Lack of dividend yield and negative momentum signals slightly impact attractiveness.

Positive Factors

Cash Flow

Cash management track record improves with management delivering underlying free cash flow of €30m in FY24, similar to FY23.

EBITDA Margin

EBITDA margin increased by 20 basis points to 7.9% in 3Q24, driven by continued gross margin expansion.

Profitability

Management has convincingly delivered on profitability and cash management.

Negative Factors

Market Visibility

Visibility remains low in Safilo's main region, North America that drives approximately 43% of company's sales, in context of macro and consumer spending uncertainty.

Sales Decline

Top-line momentum remained muted with a 3.4% constant-currency sales decline, driven by deteriorating conditions in Europe and China.

Underperformance

The sun business in Europe and sports brands in North America continued to underperform due to poor weather conditions and challenging market environments.

Safilo Group SpA Business Overview & Revenue Model

Company Description

Safilo Group S.p.A. engages in the design, production, wholesale, and retail distribution of products for the eyewear market in North America, Europe, the Asia Pacific, and internationally. Its brand portfolio comprises a set of own branded products, such as optical frames, sunglasses, sports goggles, and helmets, as well as licensed brands,including prescription frames and sunglasses. The company offers its products under own brands comprising Carrera, Polaroid, Safilo, Smith, Blenders Eyewear, and Privé Revaux, as well as Adensco, Chesterfield, Elasta, and Emozioni; and licensed brands, such as Banana Republic, BOSS, Carolina Herrera, Chiara Ferragni, David Beckham, Dsquared2, Fossil, havaianas, HUGO, Isabel Marant, Jimmy Choo, Juicy Couture, Kate Spade, LEVI'S, Liz Claiborne, Marc Jacobs, Missoni, M Missoni, Moschino and Love Moschino, Pierre Cardin, PORTS, rag&bone, Rebecca Minkof, Tommy Hilfiger, Tommy Jeans, Under Armour, and Liz Claiborne brand. It serves opticians, optometrists, ophthalmologists, distribution chains, department stores, specialized retailers, and licensors' own stores, as well as duty free and sports shops. The company sells its products through a network of independent distributor partners. The company was formerly known as Safilo Holding S.p.A. and changed its name to Safilo Group S.p.A. in September 2005. Safilo Group S.p.A. was founded in 1878 and is headquartered in Padua, Italy.

How the Company Makes Money

Safilo Group SpA generates revenue primarily through the sale of its eyewear products, including optical frames and sunglasses, under both proprietary and licensed brands. The company's revenue model is built on a combination of wholesale distribution to retailers, direct-to-consumer sales through its own retail outlets, and e-commerce platforms. Safilo's key revenue streams include its portfolio of licensed brands, such as Dior, Fendi, and Jimmy Choo, and its own brands like Carrera and Polaroid. Strategic partnerships with luxury fashion houses and sports brands play a crucial role in its earnings, as these collaborations enhance brand visibility and market reach. Additionally, Safilo invests in innovation and design to maintain its competitive edge in the industry, which also contributes to its income.

Safilo Group SpA Financial Statement Overview

Summary

Safilo Group SpA has demonstrated improvements in profitability and cash flow generation, despite revenue declines. The balance sheet remains robust with manageable debt levels and improved equity ratios. Continued focus on operational efficiency and cost management could further bolster financial performance amidst industry challenges.

Income Statement

The company's revenue has been volatile, showing a decline in recent years, with a 3.3% decrease from 2022 to 2023 and a further 3.1% decrease from 2023 to 2024. Despite this, the gross profit margin in 2024 improved to 56.6% from 58.7% in 2023, indicating better cost management. The net profit margin improved significantly to 2.24% in 2024 from a negative 2.4% in 2023, showing a return to profitability. EBIT and EBITDA margins also improved, signaling operational efficiency gains.

Balance Sheet

The company's balance sheet is stable, with a debt-to-equity ratio of 0.31 in 2024, indicating moderate leverage. The equity ratio improved to 49.0% in 2024, suggesting a healthy balance between debt and equity financing. Return on equity increased to 5.4% in 2024, indicating better shareholder value creation compared to previous years.

Cash Flow

The company has shown strong cash flow performance with a 87.4% growth in free cash flow from 2023 to 2024. The operating cash flow to net income ratio was 3.42 in 2024, indicating strong cash generation relative to net income. The free cash flow to net income ratio was 2.90, showing efficient cash conversion from earnings.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	993.22M	1.02B	1.08B	969.58M	780.30M
Gross Profit	561.73M	601.74M	537.23M	445.64M	305.25M
EBITDA	90.49M	56.35M	129.10M	109.37M	-16.27M
Net Income	22.30M	-24.65M	54.16M	21.27M	-69.66M
Balance Sheet
Total Assets	842.34M	855.46M	960.27M	937.77M	913.92M
Cash, Cash Equivalents and Short-Term Investments	47.42M	74.90M	77.71M	99.00M	88.97M
Total Debt	130.10M	157.60M	191.11M	192.96M	311.04M
Total Liabilities	414.88M	459.68M	521.35M	571.68M	727.55M
Stockholders Equity	413.07M	379.20M	409.92M	326.74M	147.32M
Cash Flow
Free Cash Flow	64.65M	34.50M	-6.71M	-2.66M	-23.38M
Operating Cash Flow	76.22M	47.71M	9.16M	17.30M	885.00K
Investing Cash Flow	-48.87M	-8.65M	-15.67M	-9.76M	-133.20M
Financing Cash Flow	-54.83M	-40.47M	-16.81M	2.07M	168.89M

Safilo Group SpA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:SFL, the sentiment is Positive. The current price of 0.86 is above the 20-day moving average (MA) of 0.86, above the 50-day MA of 0.83, and below the 200-day MA of 0.92, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 52.39 is Neutral, neither overbought nor oversold. The STOCH value of 79.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:SFL.

Safilo Group SpA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	66 Neutral	£1.85B	11.46	6.20%	2.99%	0.64%	-17.57%
SFL	65 Neutral	€357.90M	15.94	5.63%	―	-3.08%	―
0QII		€12.95B	20.23	18.81%	2.34%	―	―
0P52		€827.06M	111.21	-10.16%	2.00%	―	―
8BU		€6.99B	57.45	25.65%	0.81%	―	―
2PI		€5.95B	11.76	8.52%	4.32%	―	―
ICOS	71 Outperform	€1.22B	25.19		1.34%	7.76%	-7.28%

Safilo Group SpA Corporate Events

Safilo Group Launches Strategic Share Purchase Program

Safilo Group S.p.A. has initiated a share purchase program, authorized by its shareholders, to strategically manage financial resources and create a stock warehouse for future investment opportunities. The program, managed by Kepler Cheuvreux, will run from June 25, 2025, to December 31, 2025, and aims to purchase up to 15 million shares, representing 3.6% of shares in circulation, with a maximum countervalue of 18 million Euros. This move is expected to enhance Safilo’s operational flexibility and strengthen its market position.

The most recent analyst rating on (IT:SFL) stock is a Buy with a EUR1.40 price target. To see the full list of analyst forecasts on Safilo Group SpA stock, see the IT:SFL Stock Forecast page.

Safilo Group and Carolina Herrera Renew Global Eyewear License Agreement

Safilo Group and Carolina Herrera have renewed their global license agreement for Carolina Herrera branded eyewear collections until December 2031. This renewal underscores the successful collaboration since 2022, aiming to expand into high-potential markets and enhance brand identity through innovative and modern eyewear collections. The partnership is expected to strengthen Safilo’s market position and contribute significantly to Carolina Herrera’s strategic product portfolio.

The most recent analyst rating on (IT:SFL) stock is a Buy with a EUR1.40 price target. To see the full list of analyst forecasts on Safilo Group SpA stock, see the IT:SFL Stock Forecast page.

Safilo Group Sells Lenti Srl to Kering Eyewear

Safilo Group has announced the sale of its subsidiary Lenti Srl to Kering Eyewear. This strategic move is part of Safilo’s ongoing efforts to streamline its operations and focus on its core business areas. The sale is expected to impact Safilo’s market positioning by allowing it to concentrate resources on its primary eyewear products and services, potentially enhancing its competitive edge in the global market.

The most recent analyst rating on (IT:SFL) stock is a Buy with a EUR1.40 price target. To see the full list of analyst forecasts on Safilo Group SpA stock, see the IT:SFL Stock Forecast page.

Safilo Group Extends Supply Agreement with Kering Eyewear Until 2029

Safilo Group has announced the early renewal of its supply agreement with Kering Eyewear, extending the partnership until 2029. This renewal underscores Safilo’s strategic positioning in the eyewear market, ensuring continued collaboration with a key partner and potentially enhancing its market presence and operational stability.

The most recent analyst rating on (IT:SFL) stock is a Buy with a EUR1.40 price target. To see the full list of analyst forecasts on Safilo Group SpA stock, see the IT:SFL Stock Forecast page.

Safilo Group Publishes Shareholders’ Meeting Minutes

Safilo Group S.p.A. has published the minutes of its Ordinary Shareholders’ Meeting held on April 24, 2025. This publication is part of the company’s commitment to transparency and governance, potentially impacting its stakeholders by providing insights into its operational decisions and strategic direction.

The most recent analyst rating on (IT:SFL) stock is a Buy with a EUR1.40 price target. To see the full list of analyst forecasts on Safilo Group SpA stock, see the IT:SFL Stock Forecast page.

Safilo Group Reports Strong Start to 2025 with Increased Sales and Margins

Safilo Group S.p.A. reported a strong start to 2025 with increased sales and improved margins, despite global uncertainties. The company’s net sales rose to €285.8 million, driven by growth in Europe and the Asia-Pacific region, and a recovery in North America. The performance was bolstered by the success of brands like Smith, Carrera, and David Beckham. Safilo’s strategic focus on innovation and customer engagement, along with operational agility, has positioned it well for long-term value creation.

Safilo Group Releases Documentation Ahead of April 2025 Meeting

Safilo Group S.p.A. has released documentation related to its upcoming Ordinary Meeting on April 24, 2025, which includes various reports and financial statements. This announcement underscores the company’s commitment to transparency and governance, potentially impacting its stakeholders by providing insights into its financial health and strategic direction.